China No Longer Just A Commodity Story - Luxon
China remains New Zealand’s biggest market, taking $23 billion of our exports, but it’s no longer a commodity story, says Prime Minister Christopher Luxon.
It paid off. Chinese net total dairy product import volumes fell 15.7% year on year in 2023, with imports of whole milk powder - a major New Zealand export product - down 395.
However, six years later over-leveraged Chinese farmers are dumping milk and culling cows because it’s no longer financially viable to be a dairy farmer.
Demand for milk has fallen in China because of a slowing birth rate and a broader pullback in consumer spending, a hallmark of China’s struggle to recover its economy.
Now, the Government is rolling out stimulus packages to help dairy farmers.
A drop in China’s milk production may be good news for NZ exporters. China’s pain could be NZ’s gain.
